Weekly stock performance
The offshore drilling industry made headlines last week, especially Seadrill (SDRL), which reached a 52-week high of $0.73 on May 17. The stock rose more than 98% in Week 20 (ended May 18). On May 17, The company’s volume increased to 69.3 million shares, making it the third most actively traded stock on major US exchanges. The stock’s last-three-month trading volume was 5.2 million, and its price was 300% higher than its 52-week low.
Notably, fundamentals aren’t behind Seadrill stock’s rise—it’s been driven by its recent volatility. To learn whether the stock is overbought, read Market Realist’s What are Seadrill’s Technicals Indicating?
All offshore drillers traded positively in Week 20:
- Seadrill Partners (SDLP) rose 11.4%.
- Transocean (RIG) rose 4.7%.
- Noble (NE) rose 15%.
- Diamond Offshore (DO) rose 2.2%.
- Rowan Companies (RDC) rose 5.0%.
- Ensco (ESV) rose 8.5%.
The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, rose 4.4%.
With its phenomenal rise last week, Seadrill has returned 172% year-to-date. In the next part of this series, we’ll see where the rig count headed in Week 20.